Is unpaid tax debt stressing you out? Life happens, and unfortunately, financial troubles can occur. If you have an outstanding tax debt, there are things you should know.
It would help if you understood the potential penalties and what to expect. Continue reading to learn more on tax debt forgiveness after ten years.
Tax debt can be scary. You may feel overwhelmed and uncertain about what to do. At Karim & Associates Financial Services, LLC, you can trust that you will receive expert advice on complex tax matters.
If you don’t pay your taxes in full when filing your tax return, you will receive a bill starting a tax collection process. You will receive the first notice in the form of a letter explaining your balance due, that amount of tax, and any penalties and interest accrued on your unpaid balance.
Be advised the IRS may seize any assets you may have, such as bank accounts, social security benefits, retirement income, and wages.
Working with a knowledgeable tax professional can help you navigate your tax troubles to avoid this situation. You cannot ignore any unpaid debts. The IRS has several payment solutions available; it’s best to take action or arrange payment before drastic measures occur.
You may be eligible for a payment plan or qualify for an offer in compromise. It is crucial to speak with a knowledgeable tax specialist such as Karim & Associates Financial Services, LLC.
An offer in compromise is an agreement between you, the taxpayer, and the IRS. This agreement settles your unpaid taxes for less than the initial amount. You likely won’t qualify for an OIC if you can pay any outstanding taxes through installment payments.
Statute of Limitations
As a general rule of thumb, the IRS has a ten-year statute of limitations on IRS collections. However, some crucial exceptions may apply.
Limitations can be suspended; in this event, the time during this period is not counted as part of the ten-year period. For example, if you file for bankruptcy and the bankruptcy court issues an automatic stay, this could prevent the IRS from attempting to collect any unpaid taxes.
If the IRS is considering your request for an installment agreement, offer in compromise, or if you are residing outside of the U.S. for a six-month period or more, the period of limitations will also be suspended.
Contact Us Today
Settling your debts with the IRS doesn’t have to be complicated. Karim & Associates Financial Services, LLC is dedicated to helping you navigate your tax debt securely and efficiently.
As a family-owned business, we are trusted within the community, providing you with optimum tax services. Contact us today to find out how we can help you accomplish your goals.